Shares in Sweett Group (CSG) jumped more than 20 per cent after the property and infrastructure consultant delivered a much stronger than expected performance in the first quarter of the new financial year. Turnover in the three months to the end of June grew by 10 per cent to £19.1m, while the order book rose from £90m to £98m, which suggests that around 80 per cent of full-year forecast revenue has already been secured. Accordingly, management expects full-year figures to be significantly ahead of earlier expectations, prompting analysts at WH Ireland to upgrade their pre-tax profit forecasts by 16 per cent to £3.5m, giving EPS of 3.8p for the 12 months to March 2014, up from £2.3m and 2.5p in 2013.
Part of the group's success reflects the board's decision to diversify into the infrastructure sector just at a time when there are signs of increased activity both in the public and private sectors. Sweett has also increased its geographical footprint, notably in Saudi Arabia, Qatar and Oman, while business levels in India and Sri Lanka continue to grow steadily. And while operating profits in the Asia Pacific region - where Sweett generates around a third of total group revenue - fell from £1.9m to £1.3m, that was after taking into account significant investment in the business. Group finances remain in pretty good shape, too, and net debt in the year to March fell 13 per cent to £7.1m.
| SWEETT GROUP (CSG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 31.5p | MARKET VALUE: | £21.3m | |
| TOUCH: | 30-33p | 12-MONTH HIGH: | 33p | LOW: 15p |
| DIVIDEND YIELD: | 3.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 41p* | NET DEBT: | 25% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 78.9 | 2.20 | 2.90 | 2.40 |
| 2010 | 65.6 | 2.10 | 2.50 | 1.60 |
| 2011 | 72.8 | 2.34 | 2.60 | 1.30 |
| 2012 | 72.8 | -1.02 | -2.10 | 0.50 |
| 2013 | 80.6 | 1.78 | 1.90 | 1.00 |
| % change | +11 | - | - | +100 |
Ex-div: 14 Aug Payment: 13 Sep *Includes intangible assets of £19m, or 28p a share | ||||
